Paper-based packaging major Smurfit Kappa Group intends to launch a €90m ($101.92m) cash offer to acquire an additional 15.54% stake in Cartón de Colombia.
Smurfit Kappa currently holds a 69.94% stake in the Colombia-based packaging company.
Cartón de Colombia manufactures virgin-fibre pulp and packaging products, corrugated boxes and paper sacks, as well as printing and writing papers in Colombia.
Based in Yumbo, the company is also involved in various other initiatives such as box and used papers recycling. It also carries out reforestation activities and production of pine and eucalyptus seedlings.
Smurfit Kappa plans to fund the transaction from the group’s existing cash resources.
The deal is subject to the approval of Superintendencia Financiera de Colombia and other customary completion conditions and adjustments. It is expected to close in the second quarter of this year.
Smurfit Kappa has 350 manufacturing facilities across 35 countries with around 46,000 employees.
In February, the packaging firm expanded its operations in Mexico by opening a new folding carton plant in Tijuana.
The new plant will strengthen the company’s presence in Baja California and neighbouring Northern Mexico states.
Earlier this month, the company also acquired an injection facility in the US state of Texas in a bid to bolster bag-in-box production.
According to the company, acquisition of the new facility in San Antonio has strengthened its Vitop tap manufacturing capabilities. The company’s Bag-in-Box currently operates in 12 countries.